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The following scenarios describe ledger entries for Conversion/Buy/Receive transactions when you use asset-level expected credit loss (ECL) with an IFRS accounting basis.
Conversion for IFRS – FVOCI
On 1 January 2020, the entity converts a lot at a cost of $1,000, with established expected credit losses of $30. The lot is flagged as Stage 1, which has no accounting impact but is stored on the lot.
The ledger entries follow for an IFRS accounting basis with an FVOCI (Fair Value - Other Comprehensive Income) regulatory category.
| Ledger Account | Ledger Acct Name | Dr | Cr |
| 13100001001010000100 | COST OF INVESTMENTS-FV-OCI | 1,000 | |
| 9999999992 | CONVERSION COST | 1,000 | |
| 3003000100 | ACCUMULATED UNDISTRIBUTED INCOME(LOSS) | 30 | |
| 3003000151 | ACCUMULATED ALLOWANCE FOR ECL - OCI | 30 |
Conversion for IFRS – Amortized Cost
The ledger entries follow for an IFRS accounting basis with an AC (Amortized Cost) regulatory category.
Ledger Account | Ledger Acct Name | Dr | Cr |
16100001001010000100 | COST OF INVESTMENTS-AC | 1,000 | |
9999999992 | CONVERSION COST | 1,000 | |
3003000100 | ACCUMULATED UNDISTRIBUTED INCOME(LOSS) | 30 | |
16100104191010010419 | ALLOWANCE FOR ECL-AC | 30 |
Receive/Buy for IFRS – FVOCI
The entity purchases a lot at a cost of $1,000, with expected credit loss of $30. The lot is flagged as Stage 1, which has no accounting impact but is stored on the lot.
The ledger entries follow for an IFRS accounting basis with an FVOCI (Fair Value - Other Comprehensive Income) regulatory category.
Ledger Account | Ledger Acct Name | Dr | Cr |
13100001001010000100 | COST OF INVESTMENTS-FV-OCI | 1,000 | |
2002000100 | INVESTMENT PAYABLE | 1,000 | |
53010009025001000902 | IMPAIRMENT EXPENSE FOR ECL-FV-OCI | 30 | |
33050004063005000406 | ALLOWANCE FOR ECL-FV-OCI | 30 |
Receive/Buy for IFRS – Amortized Cost
The ledger entries follow for an IFRS accounting basis with an AC (Amortized Cost) regulatory category.
Ledger Account | Ledger Acct Name | Dr | Cr |
16100001001010000100 | COST OF INVESTMENTS-AC | 1,000 | |
2002000100 | INVESTMENT PAYABLE | 1,000 | |
56010009025001000902 | IMPAIRMENT EXPENSE FOR ECL-AC | 30 | |
16100104191010010419 | ALLOWANCE FOR ECL-AC | 30 |
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